Final Research Proposal 1 - No further Changes can be made

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COURSE CODE: MAT 6001 COURSE NAME: RESEARCH METHODS FOR BUSINESS DECISION MAKING FACULTY NAME: DR. NASEEM ABIDI CUSTOMER LOYALTY IN UAE FOR TESLA CARS RESEARCH PROPOSAL Submitted by Student ID Name Submitted on Turnitin: February 20, 2021 MASTER OF BUSINESS ADMINISTRATION SPRING (Academic Year – 2020-21)

ABSTRACT The study is researching customer loyalty to Tesla EV in the U.A.E. market. U.A.E. is a considerable automobile market and has a global presence of almost all major car manufacturers worldwide. The purpose of the research is to have Tesla created customer loyalty for its E.V. products in the U.A.E. market? Based on this, a research question is formed, and research objectives have been listed. The research framework is that a conclusive research design is adopted where descriptive research has been conducted. The target population in U.A.E. and sample selected for data collection is Sharjah. The sample size kept in the research is n = 50 for the participants given a survey form to fill. The Convivence sampling method is used, and an online survey will be conducted due to the Covid-19 pandemic. The research will use different software and techniques to analyze the data. The study is significant for Tesla company to gain information on the performance of their E.V. models in the U.A.E. market, other companies supplying E.V. products in the market of U.A.E. Keywords: Tesla, U.A.E., Electric Vehicle, Automobile, customer loyalty Table of Contents Page 2 of 17

Introduction ............................................................................................................................................... 4 Overview of Industry ............................................................................................................................. 4 Literature Review ...................................................................................................................................... 5 Research Questions and Research Objectives ......................................................................................... 6 Theoretical Support ................................................................................................................................... 6 Research Methodology .............................................................................................................................. 7 Research Design ..................................................................................................................................... 7 Data/Questionnaire ................................................................................................................................ 7 Sampling Design .................................................................................................................................... 8 Ethical Consideration and Limitations .................................................................................................... 8 Expected Analysis ...................................................................................................................................... 8 Expected Outcome ..................................................................................................................................... 9 References ................................................................................................................................................ 10 Appendix: Survey .................................................................................................................................... 12 Page 3 of 17

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Introduction U.A.E. is one of the significant markets in the automobile industry, with almost all the major car manufacturer showrooms located in the U.A.E. According to Amna Puri (2020), the sale of passenger cars sold by Toyota motors in 2019 was 149.4 thousand passenger cars worth 4.2 billion dollars. The reason for discussing Toyota and mentioning it as the metrics to assess the U.A.E market share. Market because it is considered the market leader in the U.A.E. automobile market. Another report suggests that the automobile industry's market share growth is expected to grow at a pace of CAGR of 6.7% that will be in terms of $8.66 billion by 2023 (Business Wire,2020). Tesla Inc. is currently leading in the global market of E.V. According to a McKinney's report (2020), Tesla is a market leader globally with a market share of 16% with units sold over 370,000 in 2019. The research is conducted to assess TESLA's customer base in the U.A.E. electric vehicle market. Customer loyalty is one of the factors that have been identified as the measure to see as to what percentage of the Electric vehicle market of U.A.E. market is loyal to the brand Tesla. The research will help understand the mindset of customers regarding Tesla in the U.A.E. market. There can be many things that can be derived while conducting the research. However, the focus is to assess the customer base of Tesla in U.A.E. by identifying the trait of customer loyalty in the E.V. market for the brand Tesla. Overview of Industry The Electric Vehicle (E.V.) market was formed in the last 20 years. Recently, the phenomena have taken hold in the market, primarily due to the rise in the product trend for green, sustainable, and renewable energy products. According to a report, the E.V. market is projected to reach 20 million units' sales by the end of 2030. The growth rate is CAGR 21.1%, which is derived by including the current unit sale of 3.2 million units in 2019 (Markets and markets,2019). According to another report, the U.A.E. E.V. market under the U.A.E. Vision 2021 encourages electric cars. The CAGR forecasted growth by 2019-2025 is 32.1% (Research and Markets,2019). The impact of Covid-19 was seen on the automobile market that was 45% decreased in sales in the financial year of 2020-2021. The E.V. market saw an 18% decrease in sales in the global E.V. market. As you can see, the industry seems to be flourishing and projected to grow further in the global market and the U.A.E. market. The growth can be seen that customers are favoring E.V. cars. The covid-19 factor was a global phenomenon that impacted everyone, and hence it was included in the study. Page 4 of 17

Literature Review The literature review is conducted before starting research in order to provide background regarding the topic researched. This involves searching through journals, articles, books, and newspapers to establish a research paper background. This will also help identify the gaps that can later be formed into a research question that can guide the whole research. Initially, in 2003, the company was founded as Tesla Inc. The name is a tribute to the inventor Nikola Tesla. So, the company was founded and secured funding through Series A. Their first product was Roadster. The company's focus was to build the electric car as the product offered higher performance and higher efficiency than the usual auto industry concept that was higher performance and lower millage. Tesla began the production of the Roadster in 2008. The company later launched its second car: Model S luxury sedan, and its first S.U.V. model was Model X in 2015. Later in the same year, it introduced battery-based products that were Powerwall home, Powerwall pack. Then Tesla acquired Solar city in 2016 and began selling Model 3 sedan in the same year. In 2020, the Model Y crossover was ready to be delivered to the customers. According to Nicolas Rivero (2021), the company's worth in market capitalization is around $830 billion, making it the 5th most valuable company on Wall Street. Its current share price quoted by yahoo is $ 846.64 per share (23 January 2021). The company almost has 48,016 employees. It has sold half a million cars, according to the announcement made by the company in 2021. Tesla Inc. initially discussed was the name of the company, which was later shortened to Tesla Inc., to increase focus and better reflect the expanded business scope. Tesla is a company that offers sustainability and renewable-based energy products and electric cars that provide higher performance and higher efficiency with no direct competitor present in the market that can compete with the company's products. It is currently established and positioned itself as a benchmark for the electric-based cars sector in the market. The seventh most significant exporter of crude oil, the U.A.E., is also a territorial chief in embracing E.V.s. Advancing itself as a nation focused on a low-carbon and supportable economy, the U.A.E. has an aspiring objective to help its E.V. market in the following 20 years. The Emirati government plans to support its E.V. use by 20% this year just as turn out 42,000 EVs the nation over by 2030. The U.A.E. has the most significant number of E.V. charging stations on the planet. Of the seven Emirates in the U.A.E., the unique convergence of charging stations is in Dubai, which gloats to have just introduced 200 of them. The E.V. market is required to fill in the country as the quantity of charging stations increment. The U.A.E. – especially Dubai – can get one of the worldwide pioneers embracing zero-discharge and electric vehicles. At the front line of the U.A.E.'s spotless transportation, Dubai has been effective with spurring its occupants and organizations to utilize electric and half-breed vehicles as a feature of the Dubai Green Mobility Initiative, which advances the utilization of low-carbon transportation. To help the Dubai Clean Energy Strategy 2050, which looks to deliver 75 percent of the Emirate's energy from clean energy, the Dubai Supreme Council of Energy ordered that 10% of all new vehicles in the Emirate should be electric or the mixture by 2020, and 10%, all things considered, ought to be green by 2030 (Berdikeeva, 2020). Page 5 of 17

Americans purchase a considerable number of vehicles consistently, yet research on how those choices are had, including character and individual distinction factors, has once in a while exploited mental experiences. This is an inexorably significant point because, for example, choices to purchase electric vehicles (E.V.s), as opposed to fuel-controlled vehicles, have ecological and international outcomes. A progression of studies uncovers the different views of E.V.s and gas vehicles. Likewise, these concentrates did not discover critical connections between' s E.V. buy choices and various other individual contrast characteristics frequently thought to be factored in such choices (i.e., worth social direction, political perspectives, ecological mentalities, an inclination for novel items, or a variety of center social qualities). More consideration regarding the vehicle-related qualities and prompt execution/use issues can assist with advancing E.V. buy choices and resulting upgrades in natural and political security (Brase,2019) To summarize, the research literature regarding the Electric vehicle market, Tesla, and customer care available in detail, but there is no research regarding these aspects in U.A.E. There is research suggesting the market share and growth of the E.V. market in the U.A.E. but no research on the share that each company has in U.A.E. E.V. market. There was no research on brand loyalty or customer loyalty to a specific company in the E.V. market of U.A.E. There was no indication about how many other brands are present in the market and have a customer base. No research related to Tesla EV products has been done in the U.A.E. market. Researches have been found but related To Europe, U.S.A., and the Canadian market. No research regarding Tesla, its market share, or customer loyalty has been conducted for the middle east. The main gap is that there is no research done on the customer loyalty presence for Tesla in the U.A.E. E.V. market. Research Questions and Research Objectives A research question is a foundation core of a project, study, or literature review for research purposes. It is a guideline for the research paper, including selecting methodology and dictating all inquiry stages, analysis, and reporting (Lewak,2015).  Has Tesla created customer loyalty for its E.V. products in the U.A.E. market? A research objective is a clear, concise, declarative statement or statement that provides details and directions to investigate the study variables (Jaikumar,2018). The following are step by step objective statements that need to be achieved in order to answer the research question:  To understand customer satisfaction level regarding Tesla in the U.A.E. market.  To check customer loyalty regarding Tesla in the U.A.E. market. Theoretical Support Oliver (1997) suggests a four-stage loyalty model proposing that loyalty consists of belief, affect, intentions, and action. Specifically, switching costs, social benefits, and alternatives' attractiveness are significant moderators of the four-stage loyalty model's links. The model assesses customer loyalty towards a brand or a product. Each stage will guide companies about Page 6 of 17

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what factors influence their decisions, leading the customer to become loyal to the brand. Customer loyalty incorporates three parts: intellectual, full of feeling, and conduct goals. Oliver (1999) extended this construction up to four phases and expressed that customer loyalty structures in a consecution of psychological loyalty, affective loyalty, conative loyalty, and activity (social) loyalty. In such a progressive sequence of customer conduct, one can see that attitudinal loyalty prompts social loyalty. Oliver contends that an individual gets faithful in a psychological style from the outset, at that point arrives at emotional loyalty followed by conative loyalty, lastly becomes loyal in real life. The second theory is the consumer decision-making theory that states that the consumers become aware of and identify the needs, information is gathered on how to solve their needs, and evaluation alternative is available options, make a purchase decision and evaluate their purchases. There are five steps the consumer goes through before making a decision that needs recognition where the customer becomes aware, search for the information regarding the need identified, evaluation of alternatives where the customer has gathered all the options, and assessment is being conducted as to which product will fulfill the need. The purchasing decision is where the consumer finalizes the option it requires. Post-purchase evaluation is where the customer decides whether to buy the product again or not (Millwood,2020). Research Methodology Research Design The research will be using the conductive research design as the foundation for the research where data will be collected and based on the collected data's findings or to make a decision. Further, descriptive research will be adopted in order to describe the population of the research. It focuses on describing the research subject instead then exploring the reason for such results. It will describe customer loyalty related to the Tesla brand in the U.A.E. E.V. market. The research question will be answered by sampling describing the results found when conducting field research. The research will be cross-sectional involves observing or looking at a selected population's data at a specific period. The purpose of the research is to investigate the level of customer satisfaction regarding Tesla EV products in the market of U.A.E. The data collected and analyzed will be for a period after which the research will conclude. It displays a snapshot of a particular period. Lastly, the research collection method would be a Single Cross-Sectional design. The sample is drawn only once from the population of interest: the U.A.E. market for Electric Vehicle automobiles and Tesla's brand loyalty. The research design here will guide the research on how it should be conducted to answer the research question. Data/Questionnaire The study will be survey-based. A questionnaire will be designed to identify and explore customer satisfaction and loyalty to the brand Tesla in the E.V. market of U.A.E. The survey will include MCQs with distractors, Likert scales, Open-end questions, and Yes/No questions. The survey will ask about customer satisfaction level with the product, customer loyalty regarding the E.V. product of Tesla, and general data from the participants. This will also provide data to Page 7 of 17

describe which model is being preferred in the U.A.E. market. The scale method will be used, which is already adopted by previous research when assessing ranking. The survey will be conducted using a web questionnaire due to the Covid-19 pandemic still been active. This will ensure the collection of data smoothly without any issue. Sampling Design The data collection method has been defined. When primary research is involved, the next step would be sampling. Sampling is a portion of the targeted population from which the data is collected. That data represents the characteristics and behavior of the population. Non-random sampling is used because convenience sampling is used, which is approaching the participants that can be easily accessible. The target population is U.A.E., and sampling would be done from Sharjah. The location would include cyberspace, where links will be shared in social media groups, university discussion boards, and public discussion boards due to the Covid-19 pandemic. The sample size will be n = 50. The sampling technique used is non-probability. Now, for the survey's eligibility requirement, they must be 21 or above, own a car, have knowledge about E.V. cars and Tesla, there is no restriction to gender or profession, and must reside in Sharjah. These frameworks created will be used to guide the research. There will 25 questions- based surveys, which can be found in the appendix portion of the research proposal. Ethical Consideration and Limitations Every research needs to adhere to ethical consideration, especially when research involves primary research, which means interactions with the participants. Some principals are needed to follow respect for others which means developing trust and respect. Avoidance of harm that ensures participants are never harmed. Due to Covid-19, the survey will be taken online to prevent the participants from getting affected. The participants' privacy will be kept as their names or email addresses will not be a part of the research. The voluntary right to participate in the part of the research where the participant has the right to refuse to be a part of the research. The researcher's integrity, fairness, and open-mindedness mean the researcher should be fair, honest, and have no bias policy. The limitation is associated with all research. They are that the sample size is too small, there is no budget provided for conducting the research, and additional time is required to explore the E.V. market of U.A.E. while involving other companies. Expected Analysis The research will be collected and complied with automatically through online survey portals such as Survey Monkey or Google forms. Once the data is collected, the statistical analysis will be used in which the data will be converted into graphs that will include bar and pie charts. Descriptive nominal and ordinal will be used as a bar chart or pie chart. The data presentation will be interpreted appropriately and reflect the customer satisfaction level and customer loyalty level regarding Tesla in the U.A.E. market. Microsoft Excel will be used for all the analyses conducted for the data collected from the participants. The analysis will also four-stage loyalty model based on response to assess the customers of the Tesla brand of customers present in the E.V. of the U.A.E. market. Page 8 of 17

Expected Outcome The research is conducted to answer the research question established based on background and literature review: Has Tesla created customer loyalty for its E.V. products in the U.A.E. market? The research will help understand whether there is a brand presence of Tesla in the U.A.E. market by looking at the customer loyalty for the brand in the U.A.E. market. That can be seen by assessing the level of satisfaction the customer has for Tesla. The research will also indicate which models have been the most behind the customer satisfaction level for Tesla. The findings will be helpful for the company Tesla in order to assess the market share that has been created in the E.V. market of U.A.E. The research can also be used by any individual who wants to know about how Tesla is viewed from the customer perspective in the E.V. market of U.A.E. Page 9 of 17

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References  Berdikeeva,S. (2020) Electric Vehicle Markets Emerge in Oil-Rich U.A.E. and Saudi Arabia. Retrieved from: https://insidearabia.com/electric-vehicle-markets-emerge-in-oil- rich-uae-and-saudi-arabia/  Brase, L. (2018) What Would It Take to Get You into an Electric Car? Consumer Perceptions and Decision Making about Electric Vehicles. Retrieved from: https://pubmed.ncbi.nlm.nih.gov/30260757/  Dai, R. (2020) The Analysis of Tesla's Competitive Strategy for the Chinese Market. Retrieved from: https://www.google.com/url? sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwi0k5 C-_vbuAhWjQUEAHffLBTgQFjAAegQIBRAD&url=https%3A%2F %2Fwebofproceedings.org%2Fproceedings_series%2FECOM%2FEDBM %25202020%2FEDBM20229.pdf&usg=AOvVaw2-maz02H6FHl_W-h4Lz9C_  Hanlon, A. (2020) How to use the B.C.G. Matrix model. Retrieved from: https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/  Jaikumar.M (2018) Research Objectives. Retrieved from: https://www.slideshare.net/maheswarijaikumar/research-objectives-108090672  Lewak, J. (2015) What do we mean by a research question? Retrieved from: https://www.slideshare.net/BruceH99/what-do-wemeanbyaresearchquestion  Milwood, A. (2020) Understanding the Consumer Decision Making Process. Retrieved from: https://www.yotpo.com/resources/consumer-decision-making-process-ugc/  Mirza, A. (2020) Market share of best-selling car brands in the United Arab Emirates in 2019, by select brand. Retrieved from: https://www.statista.com/statistics/673325/uae- car-sales-market-share-by-brand/  Research and Markets. (2019) U.A.E. Electric Vehicle Market (2019-2025): Market Forecast by Vehicle Types (Passenger Vehicle, Two-Wheeler, Bus and Truck), By Regions (Dubai, Abu Dhabi and Rest of Emirates) and Competitive Landscape. Retrieved from: https://www.researchandmarkets.com/reports/4827883/uae-electric-vehicle- market-2019-2025-market  Research and Markets. (2020) Automotive Aftermarket Revenue Expected to Grow at a CAGR of 6.7% During the Period 2018-2025 - ResearchAndMarkets.co. Retrieved from: https://www.businesswire.com/news/home/20200113005767/en/Automotive- Aftermarket-Revenue-Expected-to-Grow-at-a-CAGR-of-6.7-During-the-Period-2018- 2025---ResearchAndMarkets.com  Rivero, N. (2021) Tesla is now worth more than Facebook. Retrieved from: https://qz.com/1954768/teslas-stock-market-value-is-now-higher-than-facebook/  TaghiPourian & Bakhsh (2015) Loyalty: From Single-Stage Loyalty to Four-Stage Loyalty. Retrieved from: https://www.ijntr.org/download_data/IJNTR01060026.pdf  Rothaermel, T. (2020) Tesla, Inc. Retrieved from: https://www.google.com/url? sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiapL Page 10 of 17

mw__buAhUOT8AKHXb7CjEQFjAFegQICxAD&url=https%3A%2F %2Fwww.homeworkforyou.com%2Fstatic_media%2Fuploadedfiles%2FTesla %2520Case.pdf&usg=AOvVaw14MRFYRv09lejfgndqHFwI Appendix: Survey The survey has been created on survey monkey. It will be conducted by sharing the link on social media. Page 11 of 17

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Final Research Proposal 1 - No further Changes can be made

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